CBSL imposes penalties on 3 banks, 2 financial companies
The Central Bank of Sri Lanka said that penalties have been imposed by the Finance Intelligence Unit (FIU) on three banks and two finance companies over violating Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016 in relation to third party deposits, obtaining approval for Politically Exposed Persons (PEPs), sanctions screening and financial transaction reporting under Section 6 of the FTRA.
Details of the penalties imposed by the FIU for 2019/2020 period are as follows;
29 July 2019
Bank of Ceylon
3 September 2019
Nations Trust Bank PLC
24 October 2019
Commercial Credit & Finance PLC
19 February 2020
Sarvodaya Development Finance Ltd
18 May 2020
UB Finance Company Ltd
By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 06 of 2006 (FTRA), financial penalties can be imposed on institutions for non-compliance with the provision of the FTRA. The penalties may be prescribed taking into consideration the nature and gravity of relevant non-compliance of the Financial Institution or the Designated Non-Finance Business (DNFBs).
As the regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) in the country, the FIU imposed penalties, as a sum total of Rs. 5 million for the year 2019 and Rs. 1 million up to 31 May 2020 to enforce compliance on Financial Institutions.
The Monetary Board of the Central Bank of Sri Lanka at its meeting on 1 July decided to publish the penalties imposed on the financial institutions by the FIU in order to improve the AML/CFT compliance level in the country.